H&R Block, Inc.

NYSE:HRB Stock Report

Market Cap: US$7.3b

H&R Block Valuation

Is HRB undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of HRB when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HRB ($53.89) is trading below our estimate of fair value ($102.13)

Significantly Below Fair Value: HRB is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HRB?

Key metric: As HRB is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for HRB. This is calculated by dividing HRB's market cap by their current earnings.
What is HRB's PE Ratio?
PE Ratio12.6x
EarningsUS$586.97m
Market CapUS$7.33b

Price to Earnings Ratio vs Peers

How does HRB's PE Ratio compare to its peers?

The above table shows the PE ratio for HRB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average28.1x
FTDR Frontdoor
18x3.0%US$4.2b
SCI Service Corporation International
23.6x7.7%US$11.9b
MCW Mister Car Wash
30.9x22.7%US$2.3b
OSW OneSpaWorld Holdings
40.1x18.7%US$2.0b
HRB H&R Block
12.6x5.0%US$7.3b

Price-To-Earnings vs Peers: HRB is good value based on its Price-To-Earnings Ratio (12.6x) compared to the peer average (28.1x).

Price to Earnings Ratio vs Industry

How does HRB's PE Ratio compare vs other companies in the US Consumer Services Industry?

8 CompaniesPrice / EarningsEstimated GrowthMarket Cap
QSG QuantaSing Group
1.8x-25.6%US$105.80m
STG Sunlands Technology Group
1.4xn/aUS$82.52m
RGS Regis
0.6xn/aUS$50.10m
REDU RISE Education Cayman
1xn/aUS$40.41m
HRB 12.6xIndustry Avg. 19.9xNo. of Companies8PE01632486480+
8 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HRB is good value based on its Price-To-Earnings Ratio (12.6x) compared to the US Consumer Services industry average (18.8x).

Price to Earnings Ratio vs Fair Ratio

What is HRB's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HRB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.6x
Fair PE Ratio20x

Price-To-Earnings vs Fair Ratio: HRB is good value based on its Price-To-Earnings Ratio (12.6x) compared to the estimated Fair Price-To-Earnings Ratio (20x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst HRB forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$53.89
US$62.67
+16.3%
14.4%US$70.00US$50.00n/a3
Dec ’25US$59.28
US$62.67
+5.7%
14.4%US$70.00US$50.00n/a3
Nov ’25US$59.57
US$60.67
+1.8%
19.5%US$70.00US$44.00n/a3
Oct ’25US$63.07
US$60.67
-3.8%
19.5%US$70.00US$44.00n/a3
Sep ’25US$63.31
US$60.67
-4.2%
19.5%US$70.00US$44.00n/a3
Aug ’25US$56.99
US$53.00
-7.0%
18.7%US$60.00US$39.00n/a3
Jul ’25US$54.73
US$53.00
-3.2%
18.7%US$60.00US$39.00n/a3
Jun ’25US$49.64
US$53.00
+6.8%
18.7%US$60.00US$39.00n/a3
May ’25US$47.70
US$49.67
+4.1%
16.6%US$56.00US$38.00n/a3
Apr ’25US$48.22
US$49.67
+3.0%
16.6%US$56.00US$38.00n/a3
Mar ’25US$48.14
US$49.67
+3.2%
16.6%US$56.00US$38.00n/a3
Feb ’25US$46.38
US$44.33
-4.4%
16.7%US$51.00US$34.00n/a3
Jan ’25US$48.37
US$44.33
-8.3%
16.7%US$51.00US$34.00n/a3
Dec ’24US$46.25
US$44.33
-4.1%
16.7%US$51.00US$34.00US$59.283
Nov ’24US$41.74
US$39.33
-5.8%
13.3%US$44.00US$32.00US$59.573
Oct ’24US$43.06
US$39.33
-8.7%
13.3%US$44.00US$32.00US$63.073
Sep ’24US$40.07
US$39.33
-1.8%
13.3%US$44.00US$32.00US$63.313
Aug ’24US$33.74
US$36.67
+8.7%
16.9%US$42.00US$28.00US$56.993
Jul ’24US$31.87
US$36.67
+15.1%
16.9%US$42.00US$28.00US$54.733
Jun ’24US$29.94
US$36.67
+22.5%
16.9%US$42.00US$28.00US$49.643
May ’24US$34.08
US$43.00
+26.2%
25.1%US$53.00US$28.00US$47.703
Apr ’24US$35.25
US$43.00
+22.0%
25.1%US$53.00US$28.00US$48.223
Mar ’24US$36.54
US$43.00
+17.7%
25.1%US$53.00US$28.00US$48.143
Feb ’24US$39.46
US$42.00
+6.4%
29.0%US$53.00US$25.00US$46.383
Jan ’24US$36.51
US$42.00
+15.0%
29.0%US$53.00US$25.00US$48.373
Dec ’23US$43.45
US$42.00
-3.3%
29.0%US$53.00US$25.00US$46.253

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/19 05:07
End of Day Share Price 2024/12/19 00:00
Earnings2024/09/30
Annual Earnings2024/06/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

H&R Block, Inc. is covered by 19 analysts. 3 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Alexander ParisBarrington Research Associates, Inc.
Jeffrey SilberBMO Capital Markets Equity Research
Mark PalmerBTIG